Government Finance and Accounting Act
Drafted by: Ujh Uhj (LFP) Co-sponsors: Regnum Dominae (LFP), Quirina (NCP), Confederate People of the United States (GG), Consumer Regulated Donuts (LD) REALIZING that the nation is on shaky ground after weak legislation that threatens economic collapse has been hastily passed, FURTHER REALIZING that there is no legislation regarding the privatization of institutions and services, nor is there even an established currency, BOTHERED by the fact that there is no way of knowing or keeping track of national statistics that would be incredibly beneficial to this Senate, APPALLED that the Senate has gone about its business with such haste and with no regard to the state of things as defined above, and that it has passed reckless and harmful legislation, BELIEVING that the current tax system is hostile towards economic growth and that it is unnecessary without a budget, FURTHER BELIEVING that the Ministry Foundation Act is poorly written, unnecessary, and ill-advised, HOPING to replace these laws with more efficient legislation that will ensure a strong and stable economic future for this country, THE SENATE hereby enacts the Government Finance and Accounting Act. I - REPEALS a. The National Tax Act and the Ministry Foundation Act shall be struck out and rendered null and void. b. The Prime Minister may still appoint a Ministerial Cabinet as he/she chooses, but each will specialize in their respective role instead of being the head of a Ministry. Part 1 - Establishment of a Government For the Future II - CREATION OF GOVERNMENT OFFICES AND DEPARTMENTS a. The Office of National Management and Statistics is created, to be staffed by Senate administrators along with any other members they may choose. This office shall make a report to the Senate at the end of every month on the national population, gross domestic product, economic growth rate, national revenue/expenses, and any other factors it may choose. b. The Department of Justice is created. Funding for this department will go to the upkeep of courts and other department buildings throughout the country, as well as the salaries of its employees. Further legislation is recommended to continue to shape this department. c. The Department of Defense is created. This department will be charged with handling any armed forces that may exist through legislation, and further funding must be appropriated by the senate. d. The Office of Investment is created. This office shall create a system where a company or individual may apply for government funding. The office must accept or deny the application and then secure funds to be efficiently handed out to the applicant. Types of organizations eligible to receive funds includes but is not limited to: research/science, space exploration, education, sports, energy, healthcare. e. The Department of Diplomatic Relations is created. This office shall accept or deny relationships with foreign countries, and shall be responsible for all overseas embassies. f. The Office of Regulations is created. This office is divided into six sub-departments: education, health, energy, environment, labor, and miscellaneous. Regulations may only be handed down where actual problems exist and must interfere with economic growth as little as possible if at all. Larger regulations that include controversy must be left for the Senate to handle. g. The Department of Finance is created. This department is responsible for minting currency, collecting taxes, and managing the country's money. h. The Office of Government Supervision is created. This office shall oversee all national and local governments to ensure that government funding is not wasted and that all citizens are being equally protected under the law, and enforce regulations and other laws made on the government, along with other administrative duties. i. All offices and departments as defined above are public, non-partisan organizations with the goal of bettering the nation. j. The central government of the nation shall not make institutions and services, such as education, public; it will rather leave the option to do so with regional and local governments. However, institutions and services not made public will be subject to regulation from the Office of Regulations. III - ESTABLISHMENT OF A CURRENCY a. The official currency of the nation shall be the Aurentine Dollar (A$). b. Four coins shall be minted: 5/100, 10/100, 25/100, and 50/100 pieces. c. Six paper notes shall be minted: $1, $5, $10, $20, $50, and $100. d. The Senate has the power to authorize mints of special coins and paper notes. Part 2 - Taxation and Budgeting - First Budget of the Aurentine Government IV - INCOME TAX a. Direct taxes on personal income ("income tax") shall be levied on all adult citizens at a flat rate of 15 percent of earned income. From the income tax, there shall be a standard deduction that is regionally adjusted for cost of living. b. The deduction shall always exceed $15,000 Aurentine dollars, and shall never exceed $30,000 Aurentine dollars. c. Aside from the aforementioned standard deduction, there shall be no other deductions, exemptions, or special cases. V - BUSINESS TAX a. A tax ("business tax") shall be levied on all businesses at a flat rate of 10 percent of its profits. b. This tax shall not apply to businesses which have been in existence for less than two years. c. From the business tax, there shall be a standard deduction of $250,000 Aurentine dollars. d. Aside from the aforementioned standard deduction, there shall be no other deductions, exemptions, or special cases. VI - SALES TAX a. A value-added tax ("sales tax") shall be levied on consumption within Aurentina. b. Goods essential to the survival of an individual ("essential goods") shall not be taxed. c. Purchases of non-essential goods, not conducted over the Internet, shall have a value-added rate of 20 percent. d. Purchases of non-essential goods, conducted over the Internet, shall have a value-added rate of 15 percent. VII - GOVERNMENT BUDGET OUTLINE a. The central government of Aurentina has the authority to spend all money collected from taxes in the last fiscal month. b. Government spending is split into two categories: mandatory and discretionary spending. c. Mandatory spending goes to all government agencies listed in Article II, excluding the Office of Investment. d. Spending for these institutions is as follows: - 1% of all taxes collected to the Office of National Management and Statistics, - 6% of all taxes collected to the Department of Justice, - 10% of all taxes collected to the Department of Defense, - 5% of all taxes collected to the Department of Diplomatic Relations, - 8% of all taxes collected to the Office of Regulations, - 4% of all taxes collected to the Department of Finance, - 4% of all taxes collected to the Office of Government Supervision - 6% of all taxes collected to other upkeep for government infrastructure e. Discretionary spending shall be handled by the Office of Investment. f. 50% of all taxes collected shall go to the Office of Investment, to be handled as defined in section II of this Act. The Office of Investment is not required to spend all of its funds. g. All remaining funds will be deposited in the treasury for the Department of Finance to manage and collect interest. h. The Senate is require to pass a budget every two months, with a combination of raising/reducing taxes and spending. Should the Senate fail to enact a budget, the government shall go into default, where all discretionary and non-essential spending is frozen until an agreement is reached.